BY CONTINUING TO USE THIS SITE, YOU ARE AGREEING TO OUR USE OF COOKIES. REVIEW OUR PRIVACY & COOKIE NOTICE
X

Platts Jet Fuel

A closer look at Platts jet fuel coverage


NWE jet fuel barge premium to cargoes hits highest level in five years

London (Platts)--26Oct2017/852 am EDT/1252 GMT


FOB Rotterdam jet fuel barges reached their highest premium to cargoes in five years Wednesday at $7/mt, a level not seen since November 2012, amid high demand for smaller parcels of jet fuel.

Jet fuel barges, which usually trade at a discount to cargoes, have been relatively strong for the past month, mostly trading at a premium amid a backwardation in the jet fuel market which has made smaller parcels of product more sought after.

The backwardation -- where prompt prices are higher than those further forward -- makes storage unprofitable, which leaves cargoes relatively less attractive due to the need to store any excess product rather than buying for demand.

The front-month, now November, FOB Barge vs CIF NWE jet fuel swap reflects this, moving up $1.00/mt on the day to $2.25/mt Wednesday, the highest level since the assessment was launched in April 2015.

There is some scope for breaking bulk in the jet fuel market considering the large premium, where cargoes could be bought to sell in smaller parcels in the barge market, according to one trader.

--Christopher Ewen, christopher.ewen@spglobal.com
--Edited by Alisdair Bowles, alisdair.bowles@spglobal.com

Platts Email


Jet FOB Rotterdam Barg
JJet/Kero FOB Singapore Cargo
Jet 54 FOB USG Pipeline



Back

Platts and IATA

The Jetfuel Price Monitor is a joint Platts - IATA initiative
The index and price data shows the global average price paid at the refinery for aviation jet fuel at the reported date.

Platts
Platts
Copyright © 2018 S&P Global Platts, a division of S&P Global. All rights reserved.